New Zealand Inflation Rate Slows To 1.7% In Q2


Consumer prices in New Zealand increased 1.7 percent year-on-year in the second quarter of 2017, below market expectations of 1.9 percent and down from 2.2 percent in the previous period which was the highest in five years. The inflation rate eased for the first time in six quarters mainly due to a softer increase in prices of housing, utilities and transport and a steeper decline in cost of communication.

Prices rose at a slower pace for housing and utilities (3.1 percent from 3.3 percent in Q1), with purchase of new housing up 6.4 percent (6.7 percent in Q1). Inflation also slowed for transport (1.2 percent from 3.5 percent in Q1); miscellaneous goods and services (1.7 percent from 1.9 percent); alcoholic beverages and tobacco (3.7 percent from 3.9 percent). In addition, communication prices decreased 4.6 percent (-3.1 percent in Q1), with large decreases for telecommunications services and equipment. In contrast, food cost accelerated (2 percent from 1.6 percent). 

On a quartely basis, consumer prices were flat: food prices rose 0.7 percent, influenced by higher prices for vegetables (up 19 percent). Housing and household utilities prices rose 0.8 percent, influenced by purchase of new housing (up 1.8 percent). On the other hand, transport prices fell 1.3 percent, with cheaper domestic airfares (down 15 percent).

New Zealand Inflation Rate Slows To 1.7% In Q2


Statistics New Zealand | Joana Taborda | joana.taborda@tradingeconomics.com
7/18/2017 12:45:41 PM